Industry Information
    The application of GPS positioning system in the financing and lease of construction machinery
    Source:  author:release time:2015/5/6
      GPS (Global Positioning System) is widely applied in the field of financial lease of construction machinery. Along with the fast speed of technical process, GPS is not only used as a positioning system, but it is also a remote sensing facility with four functions of remote monitor, remote control, remote communication and remote adjustment. Remote monitor is to monitor the basic information of the leased items, including geographical location, equipment operation status, equipment workload, etc. Remote control is to supervise and control the leased items, including remote power on or power off, etc. Remote messaging is the instant messaging between the leaser and the lessee. Remote adjustment is to make some professional adjustments to the equipment operation status of the leased items. 
      Firmly grasp the ownership of the leased items
      According to law, the ownership of the leased items belongs to the leaser in the financial lease business, but as the lessee owns right of use, the ownership of leaser is facing credit risk and moral risk. Therefore, when the leaser anticipates that the lessee may have credit risk or moral risk, the leaser can accurately grasp the geographical location of the leased items through the remote monitor function of GPS, and then ask people to come to the surrounding areas of the leased items, and the leaser can power off the leased items remotely. By adopting the measures above, the leaser can firmly grasp the ownership of the leased items and safeguard the rights and interests of the leaser in the contract.  
      Provide value-added service to the lessee        
      With the remote monitor function of GPS, the lessee can grasp the following data of the leased items, including operation status, operation place, operation oil consumption, operation time, etc. The function can provide scientific basis for the monitor of drivers and reduce the lessee’s administration cost on drivers.       
      With the remote control function of GPS, the leaser can control the error operation of the leased items, which can avoid the unnecessary loss of the lessee caused by the error operation of operators.
      With the remote messaging function of GPS, the lessee can send the operation status of the leased items to their manufacturers in time, so that the manufacturers can provide timely maintenance for the leased items and guarantee the normal operation of the leased items.
      With the remote adjustment function of GPS, the manufacturers can update the software in the control system of the leased items through communication system, which can improve the mechanical property of the leased items.
      In conclusion, the advanced GPS equipments can bring great increment of value for the lessee, and can make the lessee feel assured and comfortable in the equipment operation process.
      Provide technical support for making innovations in leasing model     
      Along with the intensifying competition in the financial lease market, making innovations in leasing model becomes more and more important. The future leasing model shall satisfy the operation requirements of the lessee, match with the cash flow of the lessee and adopt flexible rent return method. The cash flow of the lessee is closely related with the workload of the leased items, so the flexible rent return method is to confirm the current return amount according to the workload of the leased items. Therefore, accurately grasping the workload of the leased items is the basic precondition for making flexible rent return plan for the lessee. GPS plays an important role in this field, which can provide reliable technical support for making innovations in leasing model.
      In the financial lease business, the establishing a second-hand equipment trade market is an important aspect in the industrial chain of the financial lease. Without a complete second-hand equipment trade market, it is impossible to realize the exit mechanism of the financial lease, and it is impossible to maintain the sound development of the financial lease business. An important basic condition of second-hand equipment trade is to make a scientific evaluation on the second-hand equipments. GPS can record the equipment history, workload and repair file in detail, which can guarantee its manufacturers to provide sound repair service to the leased items, and can also accurately describe the work logs of the leased items. This function can provide scientific evaluation basis for the pricing of the leased items in the second-hand trade, and promote the construction of second-hand equipment trade market for construction machinery.
      In conclusion, GPS is an important technical condition for the financial lease of construction machinery, lacking of stable and advanced GPS will severely restrict the wide development of the financial lease business of construction machinery. Therefore, manufacturers of construction machinery shall pay high attention to the installation of GPS, integrate GPS with the control system of the leased items and make it impossible for non-professionals to easily alter or remove equipments. Only by making GPS own advanced technical function can the trade safety and increment of value of the financial lease be guaranteed.